There is hereby created the California Uniform Construction
Cost Accounting Commission. The commission is comprised of 14
members.
(a) Thirteen of the members shall be appointed by the Controller
as follows:
(1) Two members who shall each have at least 10 years of
experience with, or providing professional services to, a general
contracting firm engaged, during that period, in public works
construction in California.
(2) Two members who shall each have at least 10 years of
experience with, or providing professional services to, a firm or
firms engaged, during that period, in subcontracting for public works
construction in California.
(3) Two members who shall each be a member in good standing of, or
have provided professional services to, an organized labor union
with at least 10 years of experience in public works construction in
California.
(4) Seven members who shall each be experienced in, and
knowledgeable of, public works construction under contracts let by
public agencies; two each representing cities, counties,
respectively, and two members representing school districts, and one
member representing a special district. At least one of the two
county representatives shall be a county auditor or his or her
designee.
(b) The member of the Contractors' State License Board who is a
general engineering contractor as that term is defined in Section
7056 of the Business and Professions Code shall serve as an ex
officio voting member.

The Controller, in an effort to select highly qualified
commission members, shall solicit from organized representatives of
the construction industry and public agencies recommendations for
appointments to the commission.

The commission members shall select a chairperson from among
its membership. The chairperson shall serve as chair for a term of
two years from the date of selection. In no event shall two
consecutive chairpersons be appointees representing either the
construction industry or public agencies.

(a) The members of the commission shall hold office for
terms of three years, and until their successors are appointed.
(b) Members may be reappointed, by the Controller, for subsequent
terms of three years.
(c) The Controller may appoint a successor for any commissioner
after his or her three-year term expires.
(d) The Controller shall, within 120 days, appoint a replacement
to fill any vacancy on the commission.

(a) The Controller shall make available for the conduct of
the commission's business, such staff and other support as does not
conflict with the accomplishment of the other business of the office
of the Controller.
(b) Each member of the commission shall serve without
compensation, but shall be reimbursed for travel and other expenses
necessarily incurred in the performance of the member's duties.
Reimbursement rates shall conform to the Controller's travel
guideline rates.
(c) The commission may accept grants from federal, state, or local
public agencies, or from private foundations or individuals, in
order to assist it in carrying out its duties, functions, and powers
under this chapter.

The commission shall do all of the following:
(a) After due deliberation and study, recommend for adoption by
the Controller, uniform construction cost accounting procedures for
implementation by public agencies in the performance of, or in
contracting for, construction on public projects. The procedures
shall, to the extent deemed feasible and practicable by the
commission, incorporate, or be consistent with construction cost
accounting procedures and reporting requirements utilized by state
and federal agencies on public projects, and be uniformly applicable
to all public agencies which elect to utilize the uniform procedures.
As part of its deliberations and review, the commission shall take
into consideration relevant provisions of the Office of Management
and Budget Circular A-76, as periodically revised.
(b) After due deliberation and study, recommend for adoption by
the Controller cost accounting procedures designed especially for
implementation by California cities with a population of less than
75,000. The procedures shall incorporate cost accounting and
reporting requirements deemed practicable and applicable to all
cities under 75,000 population which elect to utilize the uniform
procedures. For purposes of these cost accounting procedures, the
following shall apply:
(1) Cities with a population of less than 75,000 shall assume an
overhead rate equal to 20 percent of the total costs of a public
project, including the costs of material, equipment, and labor.
(2) Cities with a population of more than 75,000 may either
calculate an actual overhead rate or assume an overhead rate equal to
30 percent of the total costs of a public project, including the
costs of material, equipment, and labor.
(c) Recommend for adoption by the Controller, procedures and
standards for the periodic evaluation and adjustment, as necessary,
of the monetary limits specified in Section 22032.
(d) The commission shall make an annual report to the Legislature
with respect to its activities and operations, together with those
recommendations as it deems necessary.

The Controller shall, upon receipt of the commission's
recommendations, review and evaluate the recommended procedures and
either formally adopt or reject the recommended procedures within 90
days of submission by the commission.

Upon determining that the recommended uniform construction
cost accounting procedures will serve the best interests of the state
and public agencies, and upon formal adoption by the Controller, the
Controller shall promulgate the uniform procedure for all public
agencies electing to participate, together with instructions for
their adoption and implementation by any public agency.

In accordance with procedures and standards adopted pursuant
to Section 22017, every five years the commission shall consider
whether there have been material changes in public construction costs
and make recommendations to the Controller regarding adjustments in
the monetary limits prescribed by Section 22032, but in no case shall
the amount, as adjusted, be less than fifteen thousand dollars
($15,000). Any adjustment shall be effective beginning with the
fiscal year which commences not less than 60 days following the
Controller's notification to all public agencies of the adjustment.
That notification shall also describe the provisions of this chapter
and the benefits of using its provisions.